abhishreshthaa
New member
The market in government securities is significant part of the stock market in India. The government securities also dominate the Indian debt market both in term of outstanding stock as well as turnover. A large statutory borrowing is from the RBI providing the government with the ability to meet its requirements to finance large fiscal deficits.
Fresh funds mobilized through the issue of government and semi-government securities and the private corporate securities accounted for 93 to 97 percent and 3 to 7 percent respectively of the total amount of fresh funds mobilized through the issue of all securities on the stock market during eighties. The share of government securities in the total capital raised varied between 94 and 80 percent during the period 1986 and 1989.
Liquidity conditions in the market are affected by demand for credit from productive sector and other events such as foreign funds flow and monetary policy actions, with specialized knowledge about the market conditions, reserve bank is in a position to advise the government about the appropriate timing of debt issue.
Fresh funds mobilized through the issue of government and semi-government securities and the private corporate securities accounted for 93 to 97 percent and 3 to 7 percent respectively of the total amount of fresh funds mobilized through the issue of all securities on the stock market during eighties. The share of government securities in the total capital raised varied between 94 and 80 percent during the period 1986 and 1989.
Liquidity conditions in the market are affected by demand for credit from productive sector and other events such as foreign funds flow and monetary policy actions, with specialized knowledge about the market conditions, reserve bank is in a position to advise the government about the appropriate timing of debt issue.